HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that a sustainable forest
 2 products industry can help revitalize rural economies and expand
 3 local business activities in the wake of the downsizing of
 4 Hawaii's sugar industry.  This can be done without compromising,
 5 and in fact enhancing the watershed and native resource values of
 6 our public forest reserves.  Although the forest reserve system
 7 was set up to be as self-sustaining as possible, public land
 8 managers need authority to use revenues from harvested timber and
 9 other forest products to fund essential forest management
10 activities.  Existing budgets allow for only sixty acres per year
11 to be harvested and reforested sustainably.  Thus, the commercial
12 management of public forests makes little contribution to the
13 recovery and growth of Hawaii's economy. Increased monitoring and
14 compliance responsibilities are also demanding more concentrated
15 staff time.  A portion of the value derived from the harvest of
16 existing non-native forest resources should be reinvested in
17 order to reforest and manage harvested areas and to more
18 effectively manage other forest resources within the forest
19 reserve system.  This could all be done without any impact on

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 1 existing general fund revenue.  In addition, the public will
 2 respond more favorably to the use of its forest resources if
 3 proceeds derived from harvesting can be reinvested into our
 4 forests.  Funding should also be provided for environmental
 5 education materials and training programs that further the
 6 development of a responsible and sustainable forest management
 7 industry in Hawaii.
 8      The purposes of this Act are to:
 9      (1)  Provide for the reforestation and maintenance of
10           harvested plantation and naturalized non-native forest
11           areas on state lands;
12      (2)  Enhance the management of public forest reserves in
13           order to improve Hawaii's natural environment and
14           economy; and
15      (3)  Develop environmental educational and training programs
16           for the public.
17 This will be funded through the reinvestment of income derived
18 from the harvesting of non-native forest products from state
19 lands and the sale of tree seedlings from state nurseries.
20      SECTION 2.  Section 183-16, Hawaii Revised Statutes, is
21 amended to read as follows:
22      "183-16  Income from forest reserve.  (a)  In case any
23 monies accrue from the harvest of non-native forest products from

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 1 forest reserves or the sale of tree seedlings from state
 2 nurseries, the moneys shall be deposited into the forest
 3 stewardship fund.
 4      (b)  In case any other monies accrue from any forest
 5 reserve[,] or the products thereof, [or the sale of tree
 6 seedlings from state nurseries] the moneys shall be deposited
 7 with the state director of finance to the credit of the general
 8 fund."
 9      SECTION 3.  Section 195F-3, Hawaii Revised Statutes, is
10 amended to read as follows:
11      "[[]195F-3[]]  Establishment of the forest stewardship
12 program.(a)  There is established a forest stewardship program
13 to be administered by the board to assist private landowners in
14 managing, protecting, and restoring important watersheds, native
15 vegetation, timber resources, fish and wildlife habitats,
16 isolated populations of rare and endangered plants, and other
17 lands that are not recognized as potential natural area reserves.
18      (b)  The program shall reimburse landowners for a portion of
19 the landowners' total costs in developing and implementing
20 approved forest stewardship management plans, as set forth in
21 this chapter.
22      (c)  The program shall also assist in the forest stewardship
23 of public lands and for developing education and training

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 1 programs for sustainable forestry as set forth in 195F-4(a)(2)."
 2      SECTION 4.  Section 195F-4, Hawaii Revised Statutes, is
 3 amended by amending subsection (a) to read as follows:
 4      "(a)  There is established a special fund within the state
 5 treasury known as the forest stewardship fund from which:
 6      (1)  [payments] Payments shall be made by the board pursuant
 7           to agreements entered into with qualified landowners to
 8           further the purposes of this chapter[.]; and
 9      (2)  To accomplish the following activities with moneys
10           collected from the harvest of non-native products from
11           state lands and the sale of tree seedlings from the
12           state nurseries:
13           (A)  Replanting, managing, and maintaining designated
14                timber management areas;
15           (B)  Enhancing the management of public forest
16                reserves; and
17           (C)  Developing environmental education and training
18                programs pertaining to sustainable forestry,
19                provided that funding for the purposes described
20                in paragraph (B) and this paragraph may not occur
21                unless the activities described in approved
22                management plans pertaining to paragraph (A) are
23                adequately funded."

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 1      SECTION 5.  Section 195F-6, Hawaii Revised Statutes, is
 2 amended by amending subsection (e) to read as follows:
 3      "(e)  The board shall submit annually a detailed report to
 4 the governor and legislature [setting forth] that shall:
 5      (1)  Identify management objectives that have been
 6           completed[,] on private lands resulting from payments
 7           made as set forth in section 195F-4(a)(1), an analysis
 8           of problems and issues encountered in meeting or
 9           failing to meet objectives as set forth in management
10           plans[, the financial condition of the fund, and
11           management objectives for the next year.];
12      (2)  Identify all reforestation, forest management,
13           education, and training objectives that have been
14           completed as a result of any expenditures made as set
15           forth in section 195F-4(a)(2); and
16      (3)  Describe the financial condition of the fund, including
17           receipts and expenditures for the fund for the previous
18           fiscal year; and
19      (4)  Plans and management objectives for the next year."
20      SECTION 6.  There is appropriated out of the forest
21 stewardship fund the sum of $425,000, or so much thereof as may
22 be necessary for fiscal year 1999-2000, to be expended by the
23 department of land and natural resources for the purposes of this

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 1 Act.
 2      SECTION 7.  Statutory material to be repealed is bracketed.
 3 New statutory material is underscored.
 4      SECTION 8.  This Act shall take effect on July 1, 1999.
 6                           INTRODUCED BY: ________________________

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